ATTM 001.pdf
PDF 143 KB Posted
- Attached to
- INDEPENDENT VERIFICATION & VALIDATION State and local contract opportunity
- Solicitation number
- 5400024113
- Issued by
- Richland County, South Carolina
About this file
This is an attachment containing tax withholding requirements and notices for nonresidents conducting business in South Carolina under state and local contracts. The document applies to any governmental entity (Using Entity) that contracts with nonresident service providers or businesses operating temporarily within South Carolina.
The attachment outlines South Carolina Code Section 12-8-550 requirements mandating a 2% withholding on payments to nonresidents performing services in the state, with specific exemptions for contracts under $10,000 annually, tangible personal property purchases without accompanying services, nonresidents not conducting business in South Carolina, and nonresidents who register with the South Carolina Department of Revenue or Secretary of State and submit Form I-312 (Nonresident Taxpayer Registration Affidavit - Income Tax Withholding). Additionally, Section 12-8-540 requires 7% withholding on rental or royalty payments to nonresident individuals (or 5% for corporations) when annual payments reach $1,200 or more. Nonresidents must submit a separate Form I-312 affidavit to each Using Entity making payments, and once submitted, the affidavit remains valid for all contracts between the parties unless the Department of Revenue revokes the exemption. The document provides contact information for the South Carolina Department of Revenue's Withholding Section (803-898-5383 and 803-896-1420) and License and Registration Section (803-898-5872) for questions regarding tax registration and withholding compliance.
View the file
Other files for this state and local contract opportunity
| File | Type | Posted |
|---|---|---|
| IV&V FPB Solicitation.pdf | ||
| Award Extension 2.doc | DOC document | |
| ATTM 002.pdf | ||
| ATTM 005 ORGANIZATION COI.docx | DOCX document | |
| Amendment 1.pdf | ||
| ATTM 007 QUESTIONS.docx | DOCX document | |
| ATTM 009 SOW.pdf | ||
| ATTM 004 HIPAA BAA.pdf | ||
| ATTM 010 Bidding Schedule.xlsx | XLSX spreadsheet | |
| ATTM 003 CERTIFICATION.docx | DOCX document | |
| ATTM 008 SPSAQ.docx | DOCX document | |
| Award Extension.pdf | ||
| ATTM 006.pdf |
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Text version
ATTACHMENT 001
IMPORTANT TAX NOTICE - NONRESIDENTS ONLY
Withholding Requirements for Payments to Nonresidents: Section 12-8-550 of the South Carolina Code of Laws requires persons hiring or contracting with a nonresident conducting a business or performing personal services of a temporary nature within South Carolina to withhold 2% of each payment made to the nonresident. The withholding requirement does not apply to (1) payments on purchase orders for tangible personal property when the payments are not accompanied by services to be performed in South Carolina,
(2) nonresidents who are not conducting business in South Carolina, (3) nonresidents for contracts that do not exceed $10,000 in a calendar year, or (4) payments to a nonresident who (a) registers with either the S.C.
Department of Revenue or the S.C. Secretary of State and (b) submits a Nonresident Taxpayer Registration Affidavit - Income Tax Withholding, Form I-312 to the person letting the contract.
The withholding requirement applies to every governmental entity that uses a contract ("Using Entity").
Nonresidents should submit a separate copy of the Nonresident Taxpayer Registration Affidavit - Income Tax Withholding, Form I-312 to every Using Entity that makes payment to the nonresident pursuant to this solicitation. Once submitted, an affidavit is valid for all contracts between the nonresident and the Using Entity, unless the Using Entity receives notice from the Department of Revenue that the exemption from withholding has been revoked.
Section 12-8-540 requires persons making payment to a nonresident taxpayer of rentals or royalties at a rate of $1,200.00 or more a year for the use of or for the privilege of using property in South Carolina to withhold 7% of the total of each payment made to a nonresident taxpayer who is not a corporation and 5% if the payment is made to a corporation. Contact the Department of Revenue for any applicable exceptions.
For information about other withholding requirements (e.g., employee withholding), contact the Withholding Section at the South Carolina Department of Revenue at 803-898-5383 or visit the Department's website at:
https://dor.sc.gov
This notice is for informational purposes only. This agency does not administer and has no authority over tax issues. All registration questions should be directed to the License and Registration Section at 803-898-5872 or to the South Carolina Department of Revenue, Registration Unit, Columbia, S.C. 29214-0140. All withholding questions should be directed to the Withholding Section at 803-896-1420.
PLEASE SEE THE "NONRESIDENT TAXPAYER REGISTRATION AFFIDAVIT INCOME TAX
WITHHOLDING" FORM (FORM NUMBER I-312) LOCATED AT: https://dor.sc.gov/forms-site/Forms/I312.pdf
[09-9005-3] https://dor.sc.gov/forms-site/Forms/I312.pdf https://dor.sc.gov/forms-site/Forms/I312.pdf
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